According to the commercial property policy, a commercial building is considered vacant if less than what percentage of the available square footage is occupied for consecutive days?

According to the commercial property policy, a commercial building is considered vacant if less than what percentage of the available square footage is occupied for consecutive days?

• A. 50% for 30 days
• B. 70% for 60 days
• C. 30% for 90 days
• D. 50% for 60 days

Answer: (D)

A commercial building is classified as vacant under a commercial property policy if less than 31% of the available square footage is occupied for a consecutive period of 60 days. Therefore, if a building has 50% of its space occupied for less than 60 days, it is considered vacant. This definition is important as it impacts coverage and the underwriting of the policy. A policy might have different terms applied if a building is deemed vacant, as such conditions can increase the insurer's risk exposure. The correct answer reflects the standard definition within commercial property policies. Understanding vacancy definitions is crucial for insurance representatives, as it can affect the types of coverage offered and how claims are processed in the event of a loss.

A commercial building is classified as vacant under a commercial property policy if less than 31% of the available square footage is occupied for a consecutive period of 60 days. Therefore, if a building has 50% of its space occupied for less than 60 days, it is considered vacant. This definition is important as it impacts coverage and the underwriting of the policy. A policy might have different terms applied if a building is deemed vacant, as such conditions can increase the insurer's risk exposure.

The correct answer reflects the standard definition within commercial property policies. Understanding vacancy definitions is crucial for insurance representatives, as it can affect the types of coverage offered and how claims are processed in the event of a loss.